e.l.f. Beauty Announces Third Quarter Fiscal 2026 Results

e.l.f. Beauty Announces Third Quarter Fiscal 2026 Results – Delivered 38% Net Sales Growth – – Raises Fiscal 2026 Outlook – OAKLAND, California; February 4, 2026 — e.l.f. Beauty (NYSE: ELF) today announced results for the three and nine months ended December 31, 2025. “Our Q3 results, which included 130 basis points of market share gains for our namesake e.l.f. Cosmetics brand and a record-breaking launch of rhode in Sephora in the U.K., are a continuation of the consistent, category-leading growth we’ve delivered over the past 28 quarters,” said Tarang Amin, e.l.f. Beauty’s Chairman and Chief Executive Officer. “Our value proposition, powerhouse innovation and disruptive marketing engine continue to fuel our brands. We remain confident in our ability to grow market share and deliver best-in-class growth in beauty, as reflected by our raised fiscal 2026 outlook.” Three Months Ended December 31, 2025 Results For the three months ended December 31, 2025, compared to the three months ended December 31, 2024: •Net sales increased 38% to $489.5 million, primarily driven by growth in both our retailer and e-commerce channels, in the US and internationally. •Gross margin decreased approximately 30 basis points to 71%, primarily driven by higher tariff costs, partially offset by benefits from pricing and mix. •Selling, general and administrative (“SG&A”) expenses increased $61.7 million to $280.0 million. Adjusted SG&A (SG&A excluding the items identified in the reconciliation table below) increased $56.3 million to $249.2 million. The increase in SG&A is primarily related to an increase in marketing, merchandising and distribution costs, compensation and benefits, depreciation and amortization and professional fees. •Other (expense) income, net decreased from $5.3 million of other expense to $1.3 million of other expense, primarily driven by an increase in foreign currency losses in the period attributable to currency rate fluctuation. •Net income was $39.4 million on a GAAP basis. Adjusted net income (net income excluding the items identified in the reconciliation table below) was $74.5 million. •Diluted earnings per share were $0.65 on a GAAP basis. Adjusted diluted earnings per share (diluted earnings per share calculated with adjusted net income excluding the items identified in the reconciliation table below) were $1.24. •Adjusted EBITDA (EBITDA excluding the items identified in the reconciliation table below) was $123.0 million, or 25% of net sales, up 79% year over year. Nine Months Ended December 31, 2025 Results For the nine months ended December 31, 2025, compared to the nine months ended December 31, 2024: •Net sales increased 21% to $1,187.2 million, primarily driven by growth in both our retailer and e-commerce channels, in the US and internationally. •Gross margin decreased approximately 124 basis points to 70%, primarily driven by higher tariff costs, partially offset by benefits from pricing and mix. •Selling, general and administrative (“SG&A”) expenses increased $122.0 million to $706.9 million. Adjusted SG&A (SG&A excluding the items identified in the reconciliation table below) increased $102.2 million to $619.8 million. The increase in SG&A is primarily related to an increase in marketing, merchandising and distribution costs, compensation and benefits, depreciation and amortization, professional fees. •Other (expense) income, net changed from $1.3 million of other expense to $1.8 million other income, primarily driven by an increase in foreign currency gains in the period attributable to currency rate fluctuation. •Net income was $75.7 million on a GAAP basis. Adjusted net income (net income excluding the items identified in the reconciliation table below) was $166.5 million. •Diluted earnings per share were $1.28 on a GAAP basis. Adjusted diluted earnings per share (diluted earnings per share calculated with adjusted net income excluding the items identified in the reconciliation table below) were $2.81. •Adjusted EBITDA (EBITDA excluding the items identified in the reconciliation table below) was $276.3 million, or 23% of net sales, up 28% year over year. Liquidity As of December 31, 2025, the Company had $196.8 million in cash and cash equivalents, and $816.7 million of long-term debt, as compared to $73.8 million in cash and cash equivalents and $154.1 million of long-term debt outstanding as of December 31, 2024. Updated Fiscal 2026 Outlook The Company is providing the following updated outlook for fiscal 2026. The updated outlook for fiscal 2026 reflects an expected 22-23% year-over-year increase in net sales, as compared to an expected 18-20% increase previously. Fiscal 2025 Actuals Previous Fiscal 2026 Outlook Current Fiscal 2026 Outlook Net sales $1,314 million $1,550-1,570 million $1,600-1,612 million Adjusted EBITDA $297 million $302-306 million $323-326 million Adjusted effective tax rate 21% 23% 23% Adjusted net income $198 million $165-168 million $180-183 million Adjusted diluted earnings per share $3.39 $2.80-2.85 $3.05-3.10 Diluted shares outstanding 58 million 59 million 59 million Webcast Details The Company will hold a webcast to discuss the results from its third quarter fiscal 2026 today, February 4, 2026, at 4:30 p.m. Eastern Time. The webcast will be broadcast live at https://investor.elfbeauty.com/stock-and-financial/events-and-presentations. For those unable to listen to the live broadcast, an archived version will be available at the same location. About e.l.f. Beauty e.l.f. Beauty (NYSE: ELF) is fueled by a belief that anything is e.l.f.ing possible. e.l.f. is a different kind of company that disrupts norms, shapes culture and connects communities, through positivity, inclusivity and accessibility. The mission is clear: to make the best of beauty accessible to every eye, lip and face. e.l.f. Beauty and its brands, e.l.f. Cosmetics, e.l.f. SKIN, Keys Soulcare, Well People, Naturium and rhode, are led by purpose, driven by results and elevated by superpowers. e.l.f. Beauty offers e.l.f. clean and vegan products, all double-certified by PETA and Leaping Bunny as cruelty free, and proudly stands as the first beauty company with Fair Trade Certified™ facilities. With a kind heart at the center of e.l.f.’s ethos, the company donates 2% of net profits to organizations that make positive impacts. Learn more at https://www.elfbeauty.com/ Note Regarding non-GAAP Financial Measures This press release includes references to non-GAAP measures, including adjusted EBITDA, adjusted SG&A, adjusted net income and adjusted diluted earnings per share. The Company presents these non-GAAP measures because its management uses them as supplemental measures in assessing its operating performance, and believes they are helpful to investors, securities analysts and other interested parties in evaluating the Company’s performance. The non-GAAP measures included in this press release are not measurements of financial performance under GAAP and they should not be considered as alternatives to or substitutes for measures of performance derived in accordance with GAAP. In addition, these non-GAAP measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items. These non-GAAP measures have limitations as analytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing the Company’s results as reported under GAAP. The Company’s definitions and calculations of these non-GAAP measures are not necessarily comparable to other similarly titled measures used by other companies due to different methods of calculation. Adjusted EBITDA excludes expense or income related to stock-based compensation, loss on extinguishment of debt and other non-cash and non-recurring items. Such other non-cash or non-recurring items include amortization of internal-use software costs related to cloud applications, acquisition related costs, and ERP implementation costs. Adjusted SG&A excludes expense related to stock-based compensation and other non-recurring items. Such other non-recurring items include other non-recurring ERP implementation costs and acquisition related costs. Adjusted effective tax rate is the tax rate when excluding the pre-tax impact of expense or income related to stock-based compensation, other non-cash and non-recurring items, amortization of acquired intangible assets, as well as the related tax impact for these items, calculated utilizing the statutory rate for where the impact was incurred. Adjusted net income excludes expense related to stock-based compensation, loss on extinguishment of debt, other non-recurring items, amortization of acquired intangible assets and the tax impact of the foregoing adjustments. Such other non-recurring items include other non-recurring ERP implementation costs and acquisition related costs. Forward-looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws, including those statements relating to the Company’s outlook for Fiscal 2026 under “Fiscal 2026 Outlook” above and those statements that we remain confident in our ability to grow market share and deliver best-in-class growth in beauty, as reflected by our raised fiscal 2026 outlook. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, actual results and the timing of selected events may differ materially from those expectations. Factors that could cause actual results to differ materially from those in the forward looking statements include, among other things, the risks and uncertainties that are described in the Company's most recent Annual Report on Form 10-K, as updated from time to time in the Company's SEC filings, as well as the Company’s ability to effectively compete with other beauty companies; the Company’s ability to successfully introduce new products; the Company’s ability to attract new retail customers and/or expand business with its existing retail customers; the Company’s ability to optimize shelf space at its key retail customers; the loss of any of the Company’s key retail customers or if the general business performance of its key retail customers declines; disruptions to our business resulting from acquisitions or investments, such as our acquisition of rhode; and the Company’s ability to effectively manage its SG&A and other expenses. Potential investors are urged to consider these factors carefully in evaluating the forward-looking statements. These forward-looking statements speak only as of the date hereof. Except as required by law, the Company assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future. Investors: Media: KC Katten Sam Critchell VP, Corporate Development & Investor Relations kkatten@elfbeauty.com VP, Corporate Communications scritchell@elfbeauty.com e.l.f. Beauty, Inc. and subsidiaries Condensed consolidated statements of operations (unaudited) (in thousands, except share and per share data) Three months ended December 31, Nine months ended December 31, 2025 2024 2025 2024 Net sales $ 489,505 $ 355,320 $ 1,187,180 $ 980,872 Cost of sales 142,010 102,015 356,286 282,225 Gross profit 347,495 253,305 830,894 698,647 Selling, general and administrative expenses 279,955 218,220 706,929 584,936 Operating income 67,540 35,085 123,965 113,711 Other (expense) income, net (1,325) (5,278) 1,834 (1,300) Interest expense, net (12,351) (3,527) (24,136) (10,953) Loss on extinguishment of debt — — (674) — Income before provision for income taxes 53,864 26,280 100,989 101,458 Income tax provision (14,488) (9,019) (25,306) (17,622) Net income $ 39,376 $ 17,261 $ 75,683 $ 83,836 Net income per share: Basic $ 0.66 $ 0.31 $ 1.30 $ 1.49 Diluted $ 0.65 $ 0.30 $ 1.28 $ 1.43 Weighted average shares outstanding: Basic 59,294,883 56,358,694 58,001,083 56,227,037 Diluted 60,190,799 58,353,219 59,159,308 58,463,343 e.l.f. Beauty, Inc. and subsidiaries Condensed consolidated balance sheets (unaudited) (in thousands, except share and per share data) December 31, 2025 March 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 196,821 $ 148,692 $ 73,845 Accounts receivable, net 190,304 126,010 187,744 Inventory, net 220,622 187,170 214,786 Prepaid expenses and other current assets 93,842 78,688 82,702 Total current assets 701,589 540,560 559,077 Property and equipment, net 44,836 28,787 19,878 Intangible assets, net 564,243 207,698 212,047 Goodwill 852,768 340,582 340,582 Other assets 160,284 130,548 133,250 Total assets $ 2,323,720 $ 1,248,175 $ 1,264,834 Liabilities and stockholders' equity Current liabilities: Current portion of long-term debt $ 30,000 $ — $ 100,250 Accounts payable 73,980 72,180 65,293 Accrued expenses and other current liabilities 150,317 104,876 128,364 Total current liabilities 254,297 177,056 293,907 Long-term debt 816,701 256,676 154,061 Deferred tax liabilities 16,737 3,812 493 Long-term operating lease obligations 67,477 48,721 48,116 Other long-term liabilities 6,662 1,055 870 Total liabilities 1,161,874 487,320 497,447 Stockholders' equity: Common stock, par value of $0.01 per share; 250,000,000 shares authorized as of December 31, 2025, March 31, 2025 and December 31, 2024; 59,052,239, 55,730,037 and 56,398,608 shares issued and outstanding as of December 31, 2025, March 31, 2025 and December 31, 2024, respectively 589 556 563 Additional paid-in capital 1,266,793 942,025 977,141 Accumulated other comprehensive income 1,028 521 183 Accumulated deficit (106,564) (182,247) (210,500) Total stockholders' equity 1,161,846 760,855 767,387 Total liabilities and stockholders' equity $ 2,323,720 $ 1,248,175 $ 1,264,834 e.l.f. Beauty, Inc. and subsidiaries Condensed consolidated statements of cash flows (unaudited) (in thousands) Nine months ended December 31, 2025 2024 Cash flows from operating activities: Net income $ 75,683 $ 83,836 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 53,033 30,899 Non-cash lease expense 8,253 7,010 Stock-based compensation expense 69,219 56,951 Amortization of debt issuance costs and discount on debt 962 413 Deferred income taxes 15,055 (4,153) Acquisition-related seller expenses (47,100) — Loss on extinguishment of debt 674 — Other, net 2,416 844 Changes in operating assets and liabilities: Accounts receivable (32,611) (65,067) Inventory 7,405 (23,652) Prepaid expenses and other assets (53,537) (77,534) Accounts payable and accrued expenses 9,807 (5,691) Other liabilities 794 (6,116) Net cash provided by (used in) operating activities 110,053 (2,260) Cash flows from investing activities: Acquisition, net of cash acquired (581,682) — Purchase of property and equipment (20,564) (7,461) Other, net (704) (278) Net cash used in investing activities (602,950) (7,739) Cash flows from financing activities: Proceeds from revolving line of credit 50,000 — Repayment of revolving line of credit (50,000) — Proceeds from long-term debt 600,000 — Repayment of long-term debt (7,500) (8,062) Debt issuance costs paid (6,891) — Repurchase of common stock (49,987) (17,076) Cash received from issuance of common stock 5,301 917 Other, net — (57) Net cash provided by (used in) financing activities 540,923 (24,278) Effect of exchange rate changes on cash and cash equivalents 103 (61) Net increase (decrease) in cash and cash equivalents 48,129 (34,338) Cash and cash equivalents - beginning of period 148,692 108,183 Cash and cash equivalents - end of period $ 196,821 $ 73,845 e.l.f. Beauty, Inc. and subsidiaries Reconciliation of GAAP net income to non-GAAP adjusted EBITDA (unaudited) (in thousands) Three months ended December 31, Nine months ended December 31, 2025 2024 2025 2024 Net income $ 39,376 $ 17,261 $ 75,683 $ 83,836 Interest expense, net 12,351 3,527 24,136 10,953 Income tax (benefit) provision 14,488 9,019 25,306 17,622 Depreciation and amortization 21,513 11,599 53,033 30,899 EBITDA $ 87,728 $ 41,406 $ 178,158 $ 143,310 Stock-based compensation 29,874 22,339 69,219 56,951 Loss on extinguishment of debt (a) — — 674 — Other non-cash and non-recurring items (b) 5,425 4,966 28,276 15,213 Adjusted EBITDA $ 123,027 $ 68,711 $ 276,327 $ 215,474 (a) Loss on extinguishment of debt includes the write-off of existing debt issuance costs and certain fees paid related to the amended credit agreement. (b) Represents other non-cash or non-recurring items, which include amortization of internal-use software costs related to cloud applications, acquisition related costs, and ERP implementation costs. e.l.f. Beauty, Inc. and subsidiaries Reconciliation of GAAP SG&A to non-GAAP adjusted SG&A (unaudited) (in thousands) Three months ended December 31, Nine months ended December 31, 2025 2024 2025 2024 Selling, general and administrative expenses $ 279,955 $ 218,220 $ 706,929 $ 584,936 Stock-based compensation (29,860) (22,303) (69,208) (56,905) Other non-recurring items (a) (873) (3,036) (17,961) (10,466) Adjusted selling, general and administrative expenses $ 249,222 $ 192,881 $ 619,760 $ 517,565 (a) Represents other non-recurring ERP implementation costs and acquisition related costs. e.l.f. Beauty, Inc. and subsidiaries Reconciliation of GAAP net income to non-GAAP adjusted net income (unaudited) (in thousands, except share and per share data) Three months ended December 31, Nine months ended December 31, 2025 2024 2025 2024 Net income $ 39,376 $ 17,261 $ 75,683 $ 83,836 Stock-based compensation 29,874 22,339 69,219 56,951 Other non-recurring items (a) 1,730 3,036 19,552 10,466 Loss on extinguishment of debt (b) — — 674 — Amortization of acquired intangible assets (c) 11,133 4,349 24,354 13,047 Tax Impact (d) (7,637) (3,952) (22,956) (11,954) Adjusted net income $ 74,476 $ 43,033 $ 166,526 $ 152,346 Weighted average number of shares outstanding – diluted 60,190,799 58,353,219 59,159,308 58,463,343 Adjusted diluted earnings per share $ 1.24 $ 0.74 $ 2.81 $ 2.61 (a) Represents other non-recurring ERP implementation costs and acquisition related costs. (b) Loss on extinguishment of debt includes the write-off of existing debt issuance costs and certain fees paid related to the amended credit agreement. (c) Represents amortization expense of acquired intangible assets consisting of customer relationships and trademarks. (d) Represents the tax impact of the above adjustments.